MFA Financial initiated with a Hold at JonesResearch

JonesResearch analyst Jason Weaver initiated coverage of MFA Financial (MFA) with a Hold rating and no price target The internally-managed mortgage REIT has built “an attractive, diversified portfolio” of mortgage-credit related investments and its strategy of securing non-recourse securitization financing for its portfolio assets enhances return durability, says the analyst. However, while “constructive on the company long-term,” the analyst is concerned in the near-term due to possible credit issues arising in the transitional BPL portfolio, which may result in a overhang on the stock in coming quarters, the analyst added.